Election Day dawns clear and bright here in NYC, but grey and menacing in our markets.
Election Day dawns clear and bright here in NYC, but grey and menacing in our markets. Negative premarket reactions to beat-and-raise news are warning us that investors are not confident in the near-term trend. AAPL and PLTR, the golden boys of their respective spaces, are down this morning after releasing better than expected earnings. In the case of PLTR, quarterly revenue grew 96% year over year, and commercial billings exceeded government billings for the first time. Still, no love from the trading community, which is just not in the mood. Don’t be fooled by the flat-to-moderately-positive morning futures.
All eyes will be focused on exit polling throughout the day and on official vote tallies through the evening. It is hard to envision a scenario where we wake to celebratory Nasdaq futures tomorrow morning. The neocloud sector (CRWV, NBIS, IREN) seems especially vulnerable to election news, as some races hinge on the issue of siting datacenters. On the Iran front, the timeline we flagged yesterday may have been too conservative, as the US has already begun “defensive” strikes on Iranian territory. We did think that hostilities would wait at least until the polls closed.
Keep your shopping list at the ready. Election fallout could get sloppy in places. Nothing has fundamentally changed in the AI story. If you missed your entry in the past, this might be a second bite at the apple. Watch our trading board for setups as they emerge in real time.
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